Economic efficiency requires all Pareto improvements to be made.

Name: Economic efficiency requires all Pareto improvements to be made.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Economic efficiency refers to a situation where resources are allocated in a way that maximizes societal welfare. A Pareto improvement is a change that makes at least one person better off without making anyone else worse off. In order to achieve economic efficiency, all possible Pareto improvements must be made. Therefore, the statement is true.

Economic Efficiency Requires All Pareto Improvements to Be Made